1. Field of the Invention
The present invention relates generally to debit cards, and in particular to a non-cash, value-added, reloadable card which can be issued anonymously.
2. Description of the Prior Art
Commercial transactions typically involve transferring funds. Payments for goods and services involve transferring funds from buyers to sellers. Payments are also made on accounts. Payments can be made with cash, checks, drafts and various other negotiable instruments. Such methods all have their advantages. However, credit and debit cards enjoy ever-increasing popularity for paying on accounts and for purchasing goods and services.
An important advantage of credit/debit cards relates to their security. For example, even if a card is lost or stolen, its owner is normally exposed to only limited liability, if any, for its misuse. Moreover, various security measures tend to minimize unauthorized credit/debit card usage. By verifying cardholder identities and by invoking other security measures, commercial institutions have achieved some measure of success in curbing credit/debit card fraud. Such measures notwithstanding, credit/debit card fraud and the related problem of identity theft continue to cause huge losses.
Credit cards essentially provide their holders with lines of credit from issuing institutions. Thus, purchases and account payments result in credit card account balances. The cardholders are responsible for paying these balances pursuant to the terms and conditions of the credit card agreements.
Debit cards, on the other hand, are used for spending funds which have been pre-deposited in cardholders' accounts. They tend to operate much like checking accounts because consumers generally cannot exceed predetermined limits based on their previous deposits with the issuing institutions.
Various systems and methods have previously been proposed for providing consumers with the convenience of credit/debit cards with certain use restrictions. For example, the Levine et al. U.S. Pat. No. 5,477,038 discloses a method and apparatus for distributing currency using debit cards. Special-purpose cards have also been proposed and include pre-paid telephone calling cards. An example is shown in the Stimson et al. U.S. Pat. No. 5,511,114. The Stimson et al. U.S. Pat. Nos. 5,577,109 and No. 5,721,768 also show pre-paid (i.e., debit) cards, which are designed for general purchases.
Debit cards are also used for obtaining cash from pre-funded accounts. The Cucinotta et al. U.S. Pat. No. 5,663,546 discloses an example of such a card. The cardholder can remain anonymous whereby cash transfers can be made confidentially. The global computer network (“Internet”) has been utilized for loading debit cards, which can then be used for making purchases over the global computer network. An example of such a system and architecture is shown in the Davis et al. U.S. Pat. No. 6,105,008.
Other types of debit cards include “gift” cards, which are typically not reloadable. Gift cards are available in variations which permit cash to be dispensed and in other variations which are restricted to purchases of goods and services. For example, Western Union offers gift cards for dispensing cash to card holders, who can remain anonymous.
Heretofore there has not been available a reloadable debit card system and method for purchasing goods and services with the advantages and features of the present invention.